Thank you. I'll go to the Member from Deh Cho.
Thank you, Mr. Chair. That's it for me. I just wanted to make sure that if we could, we could get one maybe around Big River or somewhere along the way where local artisans, too, can display their stuff and people can get information about the good things that are happening in the Deh Cho. Thank you.
Okay, thank you. Is there any further questions from Members on this one? Seeing none, fno further questions, please turn to page 248.
Industry, tourism and investment, tourism and parks, operations expenditure summary, 2025-2026 Main Estimates, $18,575,000. Does the committee agree?
Agreed.
Thank you. There are additional information items on page 252 to 256. Are there any questions? Seeing none. Thank youf, Members. Please return to the department summary found on page 229 and revenue summary information items on page 230. Are there any questions? Yellowknife North member.
Thank you, Mr. Chair. I have to be really quick.
Okay, so I see in the revenue summary under minerals, oil and gas royalties, you know, last year we ended up getting $1.6 million and this coming year we're expecting $1.7 million. But then I look at how much we're spending under minerals and petroleum resources on diamonds, royalties and financial analysis, and that's $4.3 million. I do understand from ITI's previous information that we have a diamond valuator contract to valuate the diamonds that has been increasing this year and we're up to $2.7 million just for the valuator contract this year. Can the Minister explain how it makes financial sense to spend $2.7 million to valuate diamonds that we're only getting $1.7 million on royalties from? Thank you, Mr. Chair.
Thank you. I'll go to the Minister.
Thank you very much, Mr. Chair. Well, first of all, I would have to say that I'm legislatively required to have diamonds valuated in the territory. And the perks of diamonds or the revenue from diamonds is certainly greater than what it is seen here under the revenue summary. So, you know, example, we have hundreds -- well, over -- we've got thousands of Northerners working at our diamond mines, and Diavik alone for example, is 1200. And in addition to the people that are working at the mine and the benefits of that, or working for the mine, there's also all of the contract opportunities that exist as well.
The way that our royalty system works in the territory is it is a revenue-based royalty system which means that if mines are investing in the territory, that is deducted from their royalties so that they're able to apply that to the royalties that they're paying to the Northwest Territories. Diamond markets right now are certainly not where we'd like to see them be. They continue to go down, they continue to struggle, and that is for geopolitical reasons around the world. We're not the only jurisdiction that is struggling as far as diamond mining. But ultimately I am -- I'm legislated to ensure that our diamonds are valuated, and that is something that is done consistently through all of our diamond mines.
Okay, thank you. I'm going to go to the Member from Yellowknife North.
Thank you, Mr. Chair. I do certainly understand that there are many other kinds of benefits that come from diamond mines besides royalties themselves. I wonder if -- I just -- the contrast in the numbers is quite stark though, in terms of the amount of money required apparently to, you know, verify or valuate something versus the royalties coming from that product. Are there any ways that the Minister has explored to try to find cost efficiencies or savings? Is there a, you know, less fancy version of diamond valuation? I'm not sure, I don't understand much about this area of work but are there different, you know, levels of service that are available that could help us sort of scale to, you know, the level that we're dealing with here given the amount of royalties we're getting? Thank you, Mr. Chair.
Thank you. I'll go to the Minister.
Thank you very much, Mr. Chair. So we're certainly always making sure that we're getting the best bang for our buck. This was an RFP that was recently awarded, and so certainly still going through that process on a regular basis and so this contract was recently awarded and went through our procurement processes.
It's worth noting, too, that over the -- this is certainly not the norm. You know, our royalties over the last ten years have looked as wonderful as $62 million and then, unfortunately, this year it's far lower. I certainly hope that diamond commodities will turn around but that's not something that is predicted in the next little while here. But we certainly are constantly looking forward to making sure that we are getting the best bang for our buck. And ultimately -- and I've lost my train of thought there.
Yes, the answer to the Member's question is yes, we are always looking to get the biggest bang for our buck. Thank you.
Okay, thank you. I'm going to go to the Member from Yellowknife North.
Thank you, Mr. Chair. I guess my final question on that is is there much competition in this sector of diamond valuators? Do we have, you know, various firms that are bidding on this kind of a contract, or are we kind of stuck with just one option in this case? Thank you, Mr. Chair.
Thank you. I'll go to the Minister. Thank you very much, Mr. Chair. Mr. Chair, it's a very specialized expertise. These are people who, you know, look at -- they're very skilled at their work, and they travel far and wide to come to the North to do this work. And so certainly when we put out RFPs, we're looking at multiple companies. Unfortunately, like many businesses, our costs do keep going up.
We have had requests from diamond mines to increase their valuations. And what that ends up doing is increasing ultimately their paydays in order to make sure that they continue working on their cash flow at a difficult time for diamond mines. And what we've said to them in this case is that we will certainly ensure that we are making the process available but we as a government won't absorb the costs of that. And it's one where even though it is -- this is difficult because this is the year that we're looking at, it's really important that we don't look at this cost in isolation because it's largely the same cost with some forced growth year over year over year. The industry has kind of a set range of where they fall in this kind of cost market and what this role demands, as far as like what funding it calls for, but it's really important that we consider the revenues over the lifespan when that contract is over the lifespan as well. And unfortunately, with commodities like this, there are amazing years, there are not-so-great years. And we're in a not-so-great year. Thank you.
Okay, thank you. All right. I'm going to go to the next Member on my list is the Member from Great Slave. My apologies. Okay, there's no further questions. Seeing none, seeing no further questions, committee, I will now call the departmental summary.
Industry, tourism and investment, operations expenditure summary, total department, 2025-2026 Main Estimates, $66,004,000. Does committee agree?
Agreed.
Thank you, Minister, and thank you to the witnesses for appearing before us. Sergeant-at-Arms, please escort the witnesses from the chambers.
Committee, what is the wish of the committee from the Member from Inuvik Boot Lake?
Thank you, Mr. Chair. Mr. Chair, I move the chair rise and report progress.
Thank you. The motion's in order. The motion is non-debatable. All those in favour? All those opposed? Thank you. Motion carried.
---Carried
I will now rise and report progress. Thank you.
Member from Tu Nedhe-Wiliideh.
Thank you, Mr. Speaker. Your committee has been considering Tabled Document 275-20(1) and, Mr. Speaker, I move that the report of the Committee of the Whole will be concurred with. Thank you, Mr. Speaker.
Thank you, Member from Tu Nedhe-Wiliideh. Can I have a seconder? I’m going to pick on my friend from Hay River South today. All those in favour? Opposed? Abstentions? None. Motion carried.
Thank you, Mr. Speaker. The Standing Committee on Accountability and Oversight will meet at rise of House.
Orders of the day for Tuesday, March 11th, 2025, at 1:30 p.m.
Prayer or Reflection
Ministers’ Statements
Members’ Statements
Recognition of Visitors in the Gallery
Reports of Committees on the Review of Bills
Reports of Standing and Special Committees
Returns to Oral Questions
Oral Question 530-20(1), Senior Envoy to Government of Canada
Oral Question 607-20(1), Coverage Exemptions for Uninsured Medical Procedures
Acknowledgements
Oral Questions
Written Questions
Returns to Written Questions
Written Question 14-20(1), Operating Rooms at Stanton Territorial Hospital
Replies to the Commissioner’s Address
Petitions
Tabling of Documents
Notices of Motion
Motions
Notices of Motion for First Reading of Bills
First Reading of Bills
Bill 22, Legislation Act
Second Reading of Bills
Consideration in Committee of the Whole of Bills and Other Matters
Tabled Document 275-20(1), 2025-2026 Main Estimates
Report of Committee of the Whole
Third Reading of Bills
Orders of the Day
Thank you, Mr. Speaker.
You done good. Colleagues, this House stands adjourned until Tuesday, March 11th, 2025, at 1:30 p.m.
---ADJOURNMENT
The House adjourned at 5:59 p.m.
